MONEYME combines $2.24bn loan book with record-low credit losses

Loan Book Growth Meets Record Credit Performance

MONEYME’s (ASX:MME) loan book has reached $2.24 billion, but the more consequential number in its first-quarter update may be the 2.0% net credit loss rate. That was the lowest level reported by the lender and the sixth consecutive quarterly improvement, helping it produce positive Normalised NPAT of $0.6 million for the three months to 30 September 2026.

Originations rose 40% year-on-year to $366 million, while gross revenue climbed 33% to $76 million. The loan book expanded 36% from a year earlier and 8% from the previous quarter, extending the growth trajectory captured in the FY26 loan book milestone, when the company reported a $2.08 billion book and improved credit quality.

Risk-Adjusted Margin Improves Despite Lower NIM

Headline net interest margin eased to 6.4%, from 7.0% a year earlier, which MONEYME attributed to the higher credit quality of the book and corresponding lower losses. Once credit losses, trust fees and corporate debt interest are included, risk-adjusted NIM rose to 2.9%, up from 1.9% in 1Q26 and 2.4% in FY26.

That improvement was accompanied by 90-plus-day arrears falling to 71 basis points from 100 basis points a year earlier. The average credit score remained within Equifax’s “Very Good” range, although the proportion of secured assets declined to 57% as personal loans and credit cards gained weight. That mix shift makes the continuing fall in losses an important metric to track as the portfolio changes.

Personal Loans and New Card Channels Drive Expansion

Personal loans grew about 58% year-on-year to a $0.91 billion book, while the secured Autopay car-loan book rose about 28% to $1.25 billion. MONEYME also launched its direct-to-consumer car finance product in August and publicly introduced its Luxury Escapes white-label credit card in September, building on the earlier Luxury Escapes partnership that was announced alongside its credit-card expansion.

The operating cost-to-income ratio fell to 21.3%, down from 27.9% a year earlier, as revenue growth outpaced the cost base. The company also reported $3.2 million of Operating Cash Profit, while saying its Horizon platform and wider use of artificial intelligence were producing efficiencies in credit decisioning, fraud detection, servicing and product development.

Funding Capacity and FY27 Profit Target

MONEYME drew a further $10 million from its $125 million iPartners corporate facility in July, taking total drawings to $85 million, with a previously announced 0.75 percentage-point margin reduction effective from 1 July. It also extended an Autopay warehouse facility on improved terms in October, including lower pricing and expanded eligibility, while Fitch Ratings upgraded eight classes of notes and affirmed seven across two Autopay trusts.

The company reaffirmed its FY27 Normalised NPAT outlook of breakeven to $7 million based on an average loan portfolio of about $2.2 billion. The measure is non-statutory and the quarterly result is unaudited; the outlook remains subject to market conditions, RBA cash-rate movements and other risks identified by the company. The next test will be whether credit losses remain at these levels as the newer card and personal-loan portfolios scale.